QUESTIONS AND ANSWERS WITH EXPLANATIONS

Question 1

While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was “fully protected” and would get her earnest money back if the sale didn’t close. He encouraged her to hire an attorney to review the contract and addendum, and then invoiced her for a nominal $15 fee to prepare transaction documents. Which of the following tasks was Jeffrey legally permitted to do?

Answer 1

A> Charging a fee for preparing legal documents
B> Drafting the early occupancy addendum
C> Filling in the contract blanks
D> Interpreting the contract provisions regarding the buyer’s full protection and getting her earnest money returned

ANSWER: C
Jeffrey did just about everything wrong! The only two tasks he performed that are NOT considered unauthorized practice of law are filling in the blanks on the purchase agreement and encouraging the buyer to seek legal advice.

Question 2

Related to the legal description of land, what’s a monument?

Answer 2

A permanent land marker sometimes used in legal descriptions

Question 3

Leon and Beth own 1/13 of a timeshare estate. How many weeks each year do they get to use the timeshare unit?

Answer 3

DIVIDE 54/13 = 4

Question 4

What type of insurance protects a lender’s collateral interest in a property that’s being financed?

Answer 4

TITLE INSURANCE

(NOT MORTGAGE INSURACE) - it protects the actual asset.

Question 5

The Simpsons are buying the Martin’s house for $415,000, and closing is set for March 15. The Martins have a loan balance of $230,000 at a rate of 4.7% and have prepaid property taxes ($2,506) and insurance ($1,400), and they also have mortgage interest to consider. Using a 365-day proration method, calculate the prorated amount the Simpsons will owe the Martins at closing. Assume February has 28 days this year. The sellers own the day of closing.

Answer 5

Calculate daily rates for taxes to be prorated: $2,506 ÷ 365 = $6.87. The Martins pay the first 74 days (January 1 through March 15): 74 x $6.87 = $508.38. $2,506 - $508.38 = $1,997.62 owed by the Simpsons. Homeowner’s insurance isn’t prorated between the buyer and seller. A homeowner’s insurance policy is an agreement between the insurance company and the policyholder, so any refund due to the seller/homeowner will be handled between those two parties.

Question 6

Jackie was sued in civil court by one of her creditors. As a result of the judgment against her, her house, car, and art collection are all subject to sale in order to pay the creditor. What type of lien is this?

Answer 6

A. General
B. Special assessment
C. Vendor’s
D. Voluntary

A general lien is placed against all of an individual’s or a business’s real and personal property, not just a specific property. General liens include judgment liens—such as in this case—income tax liens, and decedent’s debts.

Question 7

The Gatlins’ lender tells them they can afford a monthly payment of $1,830 on their new home loan. What interest rate are the Gatlins getting if this is an interest-only loan with a principal balance of $349,000?

Answer 7

A 0.524%
B 5.24%
C 6.29%
D 6.39%

Annual payment ÷ loan balance = interest rate. $1,830 x 12 to get the annual payment of $21,960. Then divide the annual payment by the loan amount: $21, 960 ÷ $349,000 = .0629, or 6.29%.

• You can also select each answer and multiply by the principal balance and then divide it by 12. The correct answer would have given you the monthly payment

Question 8

A quitclaim deed does which of these?

Answer 8

A> Transfers a property with only the covenant of warranty
B> Transfers the property with full covenants
C> Transfers without warranty any interest or title the grantor has when conveying it
D> Transfers with warranty any interest or title the grantor has in the property when conveying it

C - A quitclaim deed provides no warranties or covenants; it only guarantees that the grantor is transferring any interest or title he or she may have in the property.

Question 9

WHAT IS PUFFERY?

Answer 9

An subjective exaggeration.

Kevin’s MLS remarks note that the condo has the city’s “most beautiful twilight view of downtown and the bay.” for example:

Question 10

In order for her house to accommodate her inability to hear, Angela has made a request for the house to be equipped with a doorbell that also alerts occupants with a flashing light. Which statement is correct?

Answer 10

A If Angela installs the doorbell, it is considered a trade fixture. If Angela wants to keep it, she must remove it prior to lease expiration.
B This is likely to be considered a reasonable accommodation, and Angela should be permitted to install it at her own expense.
C This is likely to be considered a reasonable accommodation, and the landlord should install it for Angela.
D This is not likely to be considered a reasonable accommodation, and Angela will need the landlord’s written consent in order to have it installed.

B - Fair housing reasonable accommodations require housing providers to permit tenants with disabilities to modify their premises to fit their needs. The tenant does so at her own cost, and may be required to return the unit in its original condition.

Question 11

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?

Answer 11

Under the Housing for Older Persons Act of 1995, housing must have one person who is 55 or older residing in at least 80% of its occupied units to be exempt from charges of familial status discrimination by age preference.

Question 12

Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals?

Answer 12

The Department of Housing and Urban Development (HUD) enforces Title II when it relates to state and local public housing, housing assistance, and housing referrals.

Question 13

When appraisers look past how a property is being used to determine a more optimal function, what are they determining?

Answer 13

Highest and best use

Question 14

Property managers must recognize the federally protected classes under ADA and the federal Fair Housing Act. Which list most accurately lists these classes?

Answer 14

Under the Americans with Disabilities Act and the federal Fair Housing Act, it’s illegal to use race, color, religion, national origin, sex, familial status, or disability to discriminate in the sale, lease, or financing of housing.

Question 15

Regarding documentation, which of the following actions can help a licensee avoid being accused of unauthorized practice of law?

Answer 15

As a licensee, one way you can avoid inadvertently being accused of unauthorized practice of law is to use approved, fill-in-the-blank contract forms, and to always include an attorney review clause.

Question 16

According to the process appraisers follow, what action is taken first upon being assigned a property for appraisal?

Answer 16

State the problem

Question 17

Which entity services rural development loans?

Answer 17

FSA

The Farm Service Agency, an agency of the USDA, administers this program.

Question 18

What must a licensee do when he wants to purchase a home listed by the brokerage where he’s affiliated?

Answer 18

If a brokerage is listing a property that a licensee affiliated with that brokerage wants to purchase, the licensee must notify the broker in writing and disclose his intention to the seller.

Question 19

You’re representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben?

Answer 19

Dual agents must still keep their clients’ information confidential, even from the other client.

Question 20

Which of the following could indicate a problem with the chimney flue or ventilation?

Answer 20

Drafts near the fireplace can indicate a problem with the flue or ventilation. Buyers will need to know the condition of the fireplace and chimney, since they may face issues after they buy the home.

Question 21

The defeasance clause means

Answer 21

the lender is prevented from trying to pursue additional payment because the loan has been paid in full.

Question 22

An alienation clause, or due-on-sale clause,

Answer 22

requires the borrower to pay the full mortgage balance, as well as accrued interest, back to the lender before they can transfer the property to a new buyer.

Question 23

Which of the following is a common chimney or fireplace problem?

Answer 23

The presence of creosote (thick and oily liquid) outside a chimney can be a common problem.

Question 24

Craig’s loan is secured by a mortgage. Who holds legal title when this security instrument is used?

Answer 24

The borrower holds legal title to the property that secures the loan when a mortgage instrument is used.

Question 25

While Martha’s paying off her loan, her lender is holding on to something that includes her name, property address, the interest rate on her loan, what the late charge amount would be, and the amount and term of the loan. When her loan is paid off, the lender returns it to Mary, marked paid in full. What is this item?

Answer 25

A promissory note is the borrower’s promise to repay the loan. When the loan is paid in full, the note is marked as paid in full and returned to the borrower.

Question 26

Janice wanted to sell her townhome, and her neighbor was considering buying it. She wanted to put it on the market while she waited to find out if her neighbor was going to buy. In order to receive the best possible representation but avoid paying a commission if her neighbor buys the property, which type of listing agreement would best suit Janice’s needs?

Answer 26

It’s easy to confuse exclusive agency and exclusive right to sell. With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission, but the seller’s listing will likely receive more attention from the agent than it would with an open listing.

Question 27

Which economic principle says that value is created and maintained when the characteristics of a property fit in with its surroundings?

Answer 27

Conformity

Question 28

What well-known economic principle says that a property’s value is determined by what it would cost to purchase a similar property?

Answer 28

The principle of substitution assumes that a reasonable person wouldn’t pay more for a nearly identical property; therefore, the price of similar properties influences a given property’s market value.

Question 29

Jacob lost his job in an economic slump and is behind on his mortgage. Georgia is a non-judicial foreclosure state. Which section of his security deed gives his lender to right to sell the property if he defaults?

Answer 29

The Transfer of Rights in Property section gives the lender power of sale, meaning the lender can sell the property without judicial proceedings if the borrower defaults.

Question 30

Which of these would void a deed intended to convey property?

Answer 30

The grantor must be mentally competent and of legal age, though neither of these is essential for the grantee. The grantor is required to sign the deed, and the grantee must provide some sort of consideration.

Question 31

When the Georgia attorney general’s office finds that the investigation’s evidence has legal grounds, the office will either propose a consent settlement for the commission to review and approve or ______.

Answer 31

File a notice of hearing with the Office of State Administrative Hearings

Question 32

In Georgia, upon what amount is the transfer tax calculated?

Answer 32

Transfer tax is calculated based on the sales price.

Question 33

Gail was supposed to close on her new home by the end of May, but she kept asking the sellers if they could push the closing date back. Soon the summer was over and she still hadn’t closed. Gail was guilty of not adhering to which aspect of the contract?

Answer 33

Timeliness is definitely part of performance. The phrase “time is of the essence” means that the parties will proceed according to the date(s) specified in the contract. Reasonable time is assumed if a specific performance date isn’t mentioned.

Question 34

Gina is buying a condo in Tybee Island. Unless otherwise negotiated, which of the following closing costs will she pay?

Answer 34

The buyer is responsible for payment of the intangible tax unless otherwise negotiated in the purchase contract.

Question 35

Lacey works for a government agency as an office space location specialist. Her role is to gather information and locate office space for government agencies. Does she need a real estate license?

Answer 35

No, government employees are an exception to the real estate license requirement.

Question 36

Mary has a contract to buy her mother’s house when her mother is finally ready to move to a senior living community. This way, the house stays in the family. After her mother finds a suitable senior apartment and moves, Mary writes a check for the agreed-upon amount, and her mother transfers the deed to Mary. What is happening in this scenario?

Answer 36

This is an example of contract performance. Performance means that the two parties have met the terms of the contract.

Question 37

Marco, a buyer in Atlanta, wants to terminate his buyer’s representation agreement with his agent. What is TRUE about this situation?

Answer 37

Termination of the agreement may or may not relieve the buyer of any amount owed under the terms of the agreement; this will be up to the parties to determine.

Question 38

Which of the following written statements is required in a dual agency disclosure in Georgia?

Answer 38

Information of a confidential nature won’t be provided to other parties. Dual agency is optional, and both parties must consent in writing for legal dual agency to exist.

Question 39

If you see sawdust that can’t be explained, it’s probably a sawdust-like material called frass created by which pest?

Answer 39

Carpenter ants

Question 40

Who holds the promissory note while it’s being repaid?

Answer 40

The lender is the obligee who holds the note while it’s being repaid. If the note is transferred, the new owner becomes the obligee and note holder.

Question 41

What’s the transfer tax on a Georgia home sold for $215,000 with a mortgage loan of $180,000?

Answer 41

The transfer tax is .001 (.1%) of the sales price, so $215,000 x .001 = $215.

Question 42

Which real estate finance instrument in Georgia may include the pledging of collateral and the release of that collateral in the same document?

Answer 42

Lenders may release the Georgia security deed simply by noting the release on the deed itself.

Question 43

Roberto, a licensee, filled in the blanks on a standard form used in his brokerage firm. Is this okay?

Answer 43

Yes, licensees can use standard forms originally created or approved by an attorney.

Question 44

What forms the boundaries of a township?

Answer 44

Township lines and range lines

Question 45

When Shauna looked at the legal description of the property she was interested in purchasing, she read the following: “Beginning at the corner of State Route 61 and Hallowell Road, north for 314 feet, then southwest for 193 feet.” In this description, what does “north for 314 feet” represent?

Answer 45

Metes (measures) are the direction and distance of a line forming the boundary of the property.

Question 46

Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they’ve made a great investment because the land is in great shape. This reflects which physical characteristic of real property?

Answer 46

Sander and Ginny bought an old industrial site and plan to get grant money to put an environmental education center on the site. There are a few structures on the property, but they are in disrepair, and it will likely be less expensive to tear them down and build new than to rehabilitate them. However, the new owners are sure that they’ve made a great investment because the land is in great shape. This reflects which physical characteristic of real property?

Question 47

The Crows gave their son, Gibson, the family property, so long as he doesn’t join his friend’s rock band. If he joins the band, the property goes back to them. What type of estate is this?

Answer 47

With fee simple determinable, the property holder owns the property subject to a condition. If the condition is breached, then the property will go back to the original owner.

Question 48

Ari owned acreage in a rural area. He sold a small portion of it to a neighbor in an informal transaction but made no record of the sale or change of ownership. A developer offered Ari several million dollars for the entire acreage, and Ari eagerly accepted the offer. What covenant is Ari in danger of violating?

Answer 48

The covenant of seisin (also seizin) is a promise that the grantor owns the property and has the right to convey title.

Question 49

Which task is NOT the responsibility of an escrow officer?

Answer 49

The escrow officer is responsible for distributing the earnest money as outlined by the parties or the courts in case of dispute but doesn’t have the authority to determine how it should be distributed.

Question 50

The Smithwicks, your buyer clients, obtained a 90% loan on their new $400,000 home. At closing, they paid $6,150 for points at closing. How many points did they pay?

Answer 50

A point is 1% of the loan amount. The Smithwicks’ loan is $360,000 ($400,000 x .90), and they paid $6,150 for points at closing. Divide the cost into points by the loan amount to get the number of points they paid: ($6,150 ÷ 360,000 = 0.0170833, or 1.71). Also, remember to round off calculations.

Question 51

When negotiating the purchase of a property that’s subject to an existing lease, it’s critical for your client to clearly understand the lease terms, including the property management responsibilities, rent amount, renewal/purchase options, and the ______.

Answer 51

When negotiating the purchase of a property that’s subject to an existing lease, it’s critical for your client to clearly understand the lease terms, including the property management responsibilities, rent amount, renewal/purchase options, and the ______.

Question 52

Aldrich is conveying marketable title to a property buyer. Should he also furnish a title insurance policy?

Answer 52

Even though marketable title carries a higher standard of assurance than insurable title, unknown defects can occur. A marketable title that carries title insurance is the safest option for buyers.

Question 53

Alison and Brent are financing their house purchase of $232,500 with an FHA loan. Their credit score qualifies them for the minimum down payment. What do they need to put down?

Answer 53

The minimum down payment for an FHA loan is 3.5%, so Alison and Brent’s down payment needs to be $8,137.50 ($232,500 x 0.035).

Question 54

When prices go down because there are too many homes on the market and too few buyers, what economic principle is at work?

Answer 54

Competition is related to supply and demand. Multiple similar properties on the market creates competition, causing a value decrease (lower prices) because the supply exceeds demand. Fewer homes on the market means less competition, increasing demand and driving prices upward.

Question 55

As a real estate licensee in Georgia, if you advertise or otherwise market using lies, deceit, misrepresentations, fraud, or other unethical practices, what are you in violation of?

Answer 55

The Georgia Fair Business Practices Act focuses primarily on deceptive advertising. Georgia license law 43-40-25 also addresses deceptive trade practices in real estate.

Question 56

Which clause in the deed of trust and Georgia’s security deed is the equivalent of the defeasance clause in the mortgage?

Answer 56

Reconveyance

Question 57

Your home inspector Mason found some discoloration in the attic and near the windows on the second floor. Why does he think this may be a concern?

Answer 57

Discoloration in the attic or around windows and doors can be signs of a previous fire. The discoloration could be from smoke moving to the highest level of the house or escaping out openings in the home.

Question 58

Tres owns a warehouse in an area that is zoned light industrial. With an increased demand for housing in the area, Tres wants to create loft-style condos and have his property designated as residential, even though the surrounding buildings will remain light industrial. What type of zoning is this?

Answer 58

Spot zoning

Question 59

Prakesh and Jean have always wanted to renovate an old home. They found a Victorian that hasn’t been lived in for years and are considering making an offer. Their agent warns them that the property as it stands now may not be insurable. Which of the following might make it uninsurable?

Answer 59

Interior or structural items considered hazardous, such as a crumbling foundation or old heating systems or wiring, may not meet insurance company requirements for property insurance.

Question 60

During a site evaluation to determine property value, all of the following factors are important to consider EXCEPT ______.

Answer 60

Topography, utilities, and a property’s size and shape all are considered during a site visit to determine property value. Neighborhood demographics might be of interest to the buyer, but generally won’t be considered by an appraiser.

Question 61

Topography, utilities, and a property’s size and shape all are considered during a site visit to determine property value. Neighborhood demographics might be of interest to the buyer, but generally won’t be considered by an appraiser.

Answer 61

The defeasance clause means the lender may not pursue the borrower for additional funds when the loan balance is paid in full.

Question 62

Where are option contracts on multiple properties commonly seen?

Answer 62

Commercial properties

Question 63

Adamsburg, a bedroom community outside the city, is growing by leaps and bounds. There’s been a boom in the number of children under age 12. Mia wants to open an in-home daycare, but she lives in a neighborhood that isn’t zoned for home occupations. She applied for a/n _________ and, after a public hearing, was granted one to operate the daycare.

Answer 63

A special use permit, also called a conditional use permit, requires a public hearing and may be granted as long as the use is in harmony with zoning ordinances and doesn’t adversely affect the community.

Question 64

Which of these is true regarding the Georgia Real Estate Commission’s licensing power?

Answer 64

Which of these is true regarding the Georgia Real Estate Commission’s licensing power?

Question 65

With the cost approach to value, what is the replacement cost?

Answer 65

The replacement cost reflects the cost to build a functionally equivalent improvement, as opposed to the reproduction cost, which is the cost to build an exact replica of the subject, with the same materials and deficiencies.

Question 66

The termination agreement

Answer 66

states what happens when the agent separates from the firm, such as who owns any active listings, how keys are to be returned, etc.

Question 67

To make valid computations of adjustments for the sales comparison approach to value, elements of comparison must be applied in a specific order. Which element is applied first?

Answer 67

Financing terms and cash equivalency

Question 68

On a security deed in Georgia, what is the borrower referred to?

Answer 68

Two parties are involved in Georgia’s security deed: the grantor (borrower) and the grantee (lender).

Question 69

When considering the sanctions to hand down to a licensee for an unfair trade practices law violation, what does GREC consider?

Answer 69

GREC looks into a licensee’s history on matters of deception, fraud, or unethical behavior.

Question 70

What option does a Georgia licensee have when a notice for a hearing has been received?

Answer 70

The licensee can reach a settlement with the commission, resulting in disciplinary actions of the commission’s choosing. This will end the licensee’s hearing process.

Question 71

What’s true about the extension clause in Georgia’s brokerage agreements?

Answer 71

The extension clause adds time to the buyer brokerage agreement if the buyer is under contract and that falls through. The extension period equals the number of days the buyer was under contract.

Question 72

When working with a seller, you signed a listing agreement that ensured you’d receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign?

Answer 72

Exclusive right to sell

It’s easy to confuse these types of agency. With exclusive agency, the seller retains the right to find a buyer and avoid paying the commission. Exclusive right to sell agreements prohibit the seller from selling the property without paying the listing agent.

Question 73

Which of these statements accurately describes finance- and housing-related legislation?

Answer 73

The Fair Housing Act of 1968 made race, color, national origin, and religion protected classes and prohibits housing and housing financing discrimination. The ECOA prohibits discrimination based on any protected class.

Question 74

Your client submits an application to rent a condo unit. He has excellent credit and has had the same job for a long time. He uses a cane to help with his mobility. When his application is rejected, he feels it’s due to his disability. He is protected under what federal law?

Answer 74

In 1988, the Fair Housing Amendments Act provided consumers with remedies if they became victims of discrimination in housing and also added familial status and disability to the list of protected classes.

Question 75

Seller Gina feels awful that Martha, who was going to buy her property, lost her job. Gina decides to _________ Martha from the purchase contract.

Answer 75

With a release, one party to a contract can agree (in writing) to not hold the other party responsible for the contract terms and obligations.

Question 76

Starla, 35, and Gwen, 32, are going into business! Gwen is buying a share of Starla’s franchise. Their attorneys drew up a contract that had Gwen providing $45,000 to Starla in return for 50% ownership. Gwen and Starla happily signed the contract, Gwen paid Starla the $45,000, and Starla presented Gwen with a notarized certificate showing Gwen’s 50% ownership in the company. What type of contract is this?

Answer 76

This contract contains all of the essential elements, and so it is valid. The terms of the purchase contract have been completed, so it’s an executed contract, not an executory one.

Question 77

When a borrower fails to cure any default within 120 days of the lender’s original notification, the lender may begin the foreclosure process. In Georgia, borrowers may redeem the property ________________.

Answer 77

Borrowers in Georgia may redeem property any time until five days before the foreclosure sale. Borrowers have no statutory right of redemption in Georgia, so the foreclosure sale is final.

Question 78

In Georgia, buyer representation agreements ______.

Answer 78

Georgia doesn’t require a specific buyer representation agreement form, but all such agreements must be in writing.

Question 79

In Georgia, what’s the first step in the foreclosure process (sometimes called pre-foreclosure)?

Answer 79

notify the borrower of the default and attempt to work with the borrower to cure the default.

Question 80

Charlie rented a single-family residence from Hal and Mary. The lease specifies that Charlie can’t conduct any type of business out of the property. Which clause includes this prohibition?

Answer 80

The use clause in a lease outlines how a tenant may use the leased property and what activities are prohibited or allowed.

Question 81

Georgia licensee Greg and buyer Sandra’s exclusive buyer agency agreement was set to expire on March 1. On Feb 10, Sandra signed a contract with a seller, but it fell through 10 days later due to a home inspection issue. What’s the termination date of Greg and Sandra’s buyer agency agreement?

Answer 81

Greg and Sandra’s buyer agency agreement is extended to accommodate the 10 days they were under contract, so the new expiration date is March 11.

Question 82

Which clause of the sales contract says that the contract is the one and only contract between the parties?

Answer 82

Entire Agreement, Modification and Assignment

Question 83

What’s the difference between a Georgia exclusive and a non-exclusive buyer’s agreement?

Answer 83

The only difference is whether the buyer is working with one broker or multiple brokers.

Question 84

When discussing brokerage compensation policies, brokers must disclose ______.

Answer 84

How brokers representing other parties will be paid

Question 85

When completing a sales contract, licensees may only alter standard language with ______ review.

Answer 85

An attorney’s

Question 86

Rental property owners are exempt from fair housing laws if which of the following conditions is met?

Answer 86

The owner occupies a building with not more than four families.

Question 87

Eduardo works in Fayetteville as a broker. How does Georgia license law define his status?

Answer 87

A person who, for a commission or other valuable consideration, performs specific real estate-related acts for another person

Question 88

Sue Ellen has a contract to buy Roger’s house, which she has always admired, when Roger decides he’s ready to move to a senior living community. After Roger finds a suitable senior apartment and moves, Sue Ellen writes a check for the agreed-upon amount, and Roger transfers the deed to her. What is happening in this scenario?

Answer 88

Performance

Question 89

Business brokers in Georgia can seek credentials such as all of the following EXCEPT ______.

Answer 89

The Business Intermediary Endorsement (BIE) is not a recognized credential for business brokers.

Question 90

Wendell just listed Barb’s home. Barb told him that there weren’t any easements on the property, and Wendell hasn’t seen a copy of the survey. What is Wendell’s responsibility relative to the disclosure of any easements?

Answer 90

He only needs to disclose easements if they’re known.

Question 91

When a licensee is working with a property located near a Superfund site, what does that mean?

Answer 91

The licensee must disclose the existence of an environmental hazard in the area.

Question 92

Karen and Joe are purchasing a six-unit apartment complex for $450,000. The loan is secured by the property being purchased. Is this purchase subject to GRMFA provisions?

Answer 92

No, because of the number of units. GRMFA applies to loans secured by one- to four-unit residential properties.

Question 93

Which covenant requires the grantor to execute any necessary legal documents (within his power) necessary to fix title defects discovered after closing?

Answer 93

The covenant of further assurances

Question 94

Charlie represents Sue, a buyer. Charlie is being paid by Claude, the seller, through his brokerage. What’s true about this situation?

Answer 94

This doesn’t change the agency relationships. You can be paid by someone and not be that person’s agent. Compensation doesn’t determine agency—the agency relationship agreement does.

Question 95

Which of these is NOT an example of agency coupled with interest?

Answer 95

Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.

Agency coupled with interest is an agency relationship in which a licensee is given some sort of interest in or right to a principal’s property. A standard commission-based transaction isn’t agency coupled with interest.

Question 96

what is true about bulk zoning?

Answer 96

it restrict certain mesuaremnts such as building heights, construction 500 yards away from street and so on.

Question 97

Francine moved out of the Georgia property she was renting, and she left it in pristine condition when she returned the keys. How long after she moves out does the property manager have to return her security deposit?

Answer 97

One month

Question 98

Which of the following may represent an exemption from Georgia fair housing laws?

Answer 98

Angie owns a four-plex. She lives in one unit and rents out the others. Landlords who own a four-unit or fewer building, rent the other units, and live in one unit are exempt from fair housing law as long as they don’t use a licensee’s services or use discriminatory ads.

Question 99

Drew and Hank were camping at Hank’s riverfront cabin. Hank told Drew that he rarely used the cabin and was thinking of selling it. Drew said that he’d buy it from Hank for $80,000, which Hank agreed was a fair price. It’s two months later, and Hank is upset that Drew now says he won’t buy it. Why isn’t this contract enforceable?

Answer 99

Real estate contracts must be in writing.

Question 100

What is a township?

Answer 100

A 36-square-mile square formed in the use of the rectangular government survey system

Question 101

A homeowner has converted two rooms in his home to a rental unit. What does the “Mrs. Murphy” exemption permit him to do?

Answer 101

Refuse to rent to a female tenant.

The “Mrs. Murphy” exemption applies to owner-occupied buildings with no more than four units. The owner may choose to rent only to a like-sex tenant but may not discriminate on any other basis.

Question 102

Which form of real property ownership (for owners other than married couples) means there’s equal ownership shares with undivided possession rights?

Answer 102

Joint tenancy provides equal ownership shares with undivided possession rights and requires four ownership unities: time, title, interest, and possession. Joint tenancy includes the right of survivorship.

Question 103

Which of these statements accurately represents one of the required elements in a deed?

Answer 103

The deed includes an act of conveyance.
The grantor is the seller; the grantee is the buyer. The grantor must sign the deed, be of legal capacity, and be positively identified. The deed must include an act of conveyance.

Question 104

Sondrine’s beach cottage has a right of way that allows nearby residents to get to the beach. What is the primary difference between a right of way and an easement?

Answer 104

A right of way provides a pass-through, but not a right to use the property.

A right of way doesn’t grant the right to use the property in any way, or to construct anything on it. It merely grants an individual or a business the right to pass through the property to get to another property.

Question 105

Which of the following would be considered a foreign person according to FIRPTA?

Answer 105

A company incorporated in France with regional development offices in the U.S.

Corporate entities that are formed outside the U.S. are considered foreign persons for the sake of the Foreign Investment in Real Estate Property Tax Act (FIRPTA).

Question 106

Which of these statements about the homeowner’s right of redemption is true?

Answer 106

Rights of redemption window with REOs may have expired.

Because of the length of time it takes to process a property after the foreclosure sale, the homeowner’s redemption period may have expired before the lender puts the REO on the market.